Communication with Those Charged with Governance and Others


Due to uncertainties that may be associated with the work undertaken by a management’s expert, the potential effects on the financial report and/or other historical financial information of any significant risks are likely to be of governance interest.


ASA 260 Communication with Those Charged with Governance contains the auditor’s responsibility to communicate with those charged with governance in an audit of a financial report. In relation to using the work of a management’s expert, the auditor, using professional judgement, may communicate:

  1. Whether management has engaged a management’s expert;
  2. Concerns regarding competency or objectivity of the management’s expert;
  3. Materiality and risk of the subject matter subject to determination by the management’s expert;
  4. The proposed intended use of the management’s expert’s work by the auditor;
  5. Key findings/conclusions of the management’s expert’s report including commentary on:
    • Significant assumptions, methods and data used;
    • Degree of subjectivity of assumptions;
    • Whether that expert’s work is adequate for audit purposes and obtains appropriate audit evidence; and
    • Significant differences in judgement between the auditor and that expert.


The appropriate timing for communications will vary with the circumstances of the engagement; however, it may be appropriate to communicate significant difficulties encountered during the audit as soon as practicable if those charged with governance are able to assist the auditor to overcome the difficulty, or if it is likely to lead to a modified opinion.